Is Allison correct that she owes no duties to shareholders?

A) Yes, she is correct because it is the directors who owe duties to shareholders.
B) No, she is incorrect because she owes a duty of care to shareholders although she owes no other duties.
C) No, she is incorrect because she owes a duty of loyalty to shareholders although she owes no other duties.
D) No, she is incorrect because she owes both a duty of care and a duty of loyalty to shareholders.
E) She is partially correct. She owes both a duty of care and a duty of loyalty to minority shareholders, but no duties to majority shareholders because the law assumes that they have the power to protect their own interests.

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Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :  Allison is incorrect in her belief that she owes no duties to shareholders. As an officer of the corporation, she owes both a duty of care and a duty of loyalty to all shareholders, not just to the directors or majority shareholders. The duty of care requires her to make informed decisions and act in the best interest of the corporation and its shareholders, while the duty of loyalty requires her to put the corporation's interests ahead of her own personal interests.

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